The initial public offering from the country’s top mortgage lender turned out to be smaller and less lucrative than expected, a sign of investor sensitivity to bleak economic forecasts despite resilience in housing markets and IPOs.
Rocket Cos., the parent company of Quicken Loans, priced shares below expectations on Wednesday night, with an offer of 100 million shares at $18 each, as Wall Street first reported. Newspaper. The company had previously planned to sell 150 million shares at between $20 and $22 each.
The stock is expected to begin trading Thursday on the New York Stock Exchange.
At the new price and number of shares sold, the IPO would raise about $1.8 billion. The debut was previously expected to raise as much as $3.3 billion, which would have been the second-largest IPO of the year behind just the $4 billion hedge fund billionaire William Ackman raised with his venture. special-purpose acquisition last month, according to Dealogic.
The mortgage market held up surprisingly well as the coronavirus pandemic hit the US economy. The Mortgage Bankers Association expects mortgage lending to rise to its highest level this year since 2005. Historically low interest rates are boosting refinances, while a tight housing supply has kept home prices at a low high level, young families moving to the suburbs and wealthy city dwellers looking for second homes.
An expanded version of this report appears on WSJ.com.
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